Evercore ISI downgraded JetBlue Airways (NASDAQ:JBLU) from In Line to Underweight and set a price target of $8 per share. The analysts explained the downgrade by pointing out that despite the negative outcome of the Northeast Alliance (NEA) ruling, which was deemed a breach of antitrust law and resulted in increased fares, JBLU shares had rallied by 37% over the past month.

The analysts noted that JetBlue is now focused on its acquisition of Spirit, and while there may be challenges along the way, they believe the acquisition will ultimately be completed. However, the premium that JetBlue is paying for Spirit is expected to continue expanding as Spirit's fundamentals moderate.

Furthermore, while less likely, there are potential scenarios involving the wind-down of the NEA that could disrupt JetBlue's capacity planning and cost execution in the second half of the year.